CHARLOTTE — Before its recent scandal, Sycamore Brewing was on the path to expansion.
They posted on Instagram earlier this year that they would be opening a new location in the Cotswold Shopping Center next summer.
It’s not clear how the allegations against Justin Brigham will impact the business’ future and his ownership.
Following child rape allegations, the public backlash to Sycamore Brewing co-owner Brigham has been swift and severe. But a business law attorney Channel 9’s Jonathan Lowe spoke to says actually ousting him as co-owner could be easier said than done.
“This is a property interest. So when we look at a property interest there must be, or there should be due process,” said Morris McAdoo, an attorney. “So you can’t just take someone’s interest.”
He said the same goes for preventing Brigham from claiming any revenue he may be legally due from being co-owner of Sycamore.
“The individual who has a right to the dividends, or any payouts can do whatever he or she wants to do, whether that would be to use it for his or her defense,” McAdoo said.
In statements posted to her social media following Brigham’s arrest, his wife Sarah Taylor, the other co-owner of Sycamore Brewing, has said he is no longer an owner.
“Is there a business organization document that says, ‘Hey, if you are charged with something, is that one of the grounds for your ownership rights to be taken away?’” said McAdoo.
Taylor appears to have already taken steps in that direction.
Channel 9 pulled Sycamore’s most recent LLC filings with the secretary of state. Both Brigham and Taylor signed as managing members this past April, but then a new one was filed this past Monday, and his name was no longer there.
“That would probably be, I would say, an additional process if you follow the internal provisions, if you follow the governing documents for that business organization,” said McAdoo.
He said from a business standpoint, Brigham is likely due an opportunity to defend his stake, which is nearly impossible right now since he remains in jail on a more than $11 million bond.
“The owner or previous owner should have the opportunity to question that, and if in fact they’re not, then they would file a lawsuit saying that my interest has been taken or that they didn’t follow the rules associated with that,” McAdoo said.
There’s another thing McAdoo mentioned, if Brigham were to fight being stripped as co-owner, Taylor could very well make the claim, because of his alleged crimes, the brand has vendor contracts, revenue due to product being pulled from shelves, and the ability the repair the brand’s image.
WATCH: Charlotte brewery owner accused of breaking into home, raping child
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